# Consider the stylized example of Figure 7.3, in which there is a jump in the mean value. Using the same

## Question:

FIGURE 7.3 Moving- Average Calculations in a Stylized Example

a. Take a = 0.2. Calculate the forecasts generated by exponential smoothing, and compute the values of MSE, MAD, and MAPE for periods 10-15.

b. Repeat the calculations in part (a) but with a = 0.6.

c. If we suspect that there might be a jump in the underlying process, which of the two values of a examined in parts (a) and (b) would be preferred?

## This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

## Step by Step Answer:

**Related Book For**

## Management Science The Art of Modeling with Spreadsheets

**ISBN:** 978-1118582695

4th edition

**Authors:** Stephen G. Powell, Kenneth R. Baker

**Question Details**

Chapter #

**6**Section: Exercises

Problem: 2

**View Solution**

Create a free account to access the answer

**Cannot find your solution?**

Post a FREE question now and get an answer within minutes.
* Average response time.